Bajaj Auto's Q3 FY17 results released on Tuesday posted net profits and revenues which beat estimates. Its revenues surged to Rs 5,350 crore from estimations of Rs 5,060 crore, the net profit was however down to Rs 977 crore in Q3 FY17 as against Rs 1,031 crore in the same quarter last year, a 5.5% decline.

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The company said that the reason for this was the government's demonetisation decision which had an adverse impact on the industry. “With a good monsoon and the 7th Pay Commission, motorcycle industry was expected to record a healthy growth. However, post demonetisation, in November and December 2016, the domestic industry for motorcycles and commercial vehicles recorded a decline of 16% and 32% respective,” it said in a release.

Despite the adverse conditions the company was able to record a strong operating earnings befoire interest tax, depreciation and amortisation (EBITDA) margin of 22%. This was the same as the corresponding quarter last year.

The company further said that despite the fall in volumes, its strategy of operating on a variable cost structure, coupled with an improvement in realisation per US dollar helped it maintain the operating EBIDTA margin at 22%.

Bajaj Auto's turnover was Rs 5,673 crore in Q3 FY17 as against Rs 6,127 crore in the corresponding quarter last year. The operating EBITDA was at Rs 1,131 crore during the quarter as against Rs 1,235 crore last year. While profit before tax was at Rs 1,286 crore as against Rs 1,339 crore in the same quarter last year.

The company's surplus cash and cash equivalents stood at Rs 10,932 crore.

In addition, Bajaj Auto's overall domestic market share stood at 18.5% in Q3 FY17 as against 17.4% in FY16.

The shares of Bajaj Auto had surged by 3.3% on BSE after the announcement of its results. As of 14:26 hours the shares of the company were up 0.88% or Rs 24.85, at Rs 2,853.55 per piece.